Tesco- Understanding the economy and its effects on the business.

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Tesco- Understanding the economy  


During the recession, the demands for Tesco’s food and groceries has decreased because customers believed the price of these groceries to beyond their reach. Because of that, customer turned to more affordable retailers’ stores like the 99 pence shop or pondland. Tesco lost about 22 million customers to their groceries competitors which caused them to lose 2 to 3 per cent of their UK sales figures. They claimed that this lost was due to discounter brands.

Tesco is also set to be cutting back on their electrical services to make space for other things … this was due to a decrease in demand in that area of the business. This was due to the fact that people didn’t trust their brand enough to spend their money compared to other electrical brad like Sonny. The price of their electronic products was also a put off for customers who felt the pinch during the recession.

The sales of their electrical products like CDs and DVDs went down because of the competition to companies like Amazon who are specialised in this area of electronics. This again was down to the trust of customers and the value for money offered. Amazon is a much more trusted brands for electronics like CDs and DVDs compared to Tesco so it makes more sense that most customers would shift to them for these kind of products

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Supply at Tesco PLC

Supplies from Tesco diminished during the recession, Tesco supplied various produce and services from petrol services to things like stationaries for school. The supplies obviously changed during the recession compared to the way it was before.  Tesco’s Supplies suffered Because of their prices, customers during the recession were after products that offered good value for money, cheap in a way. But because Tesco’s produces and services weren’t the at the price customer wanted, they switched to other suppliers

Also another way these supplies changes was that Tesco only provided their supplies on demands because ...

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